1.     Why are web-based technologies, e-business, and e-commerce applications encouraging the growth of strategic alliances?????

Today, companies realize that if they are to succeed in a highly competitive and challenging market, they must gain and share skills, information, and technology with other technology leaders. Doing things via Internet can enhance your competitiveness in a market.  Working with each other on the Internet can increase profits by getting customers from other companies.  Sometimes, both parties can benefit from the alliance.

2.Do you see significant business and customer value in the Virtual Advisor application of GM and Fidelity??

I dont see significant gains. But I do see some positives in it. Fidelity can have significant customer value since they wanted to reach more people wireless. By combining with GM and their OnStar system, they will receive 800,000 more people who drive. Doing this should increase the total profits for them.  GM will receive free content for its in-car information service. "Attracting a pre-eminent financial services provider like Fidelity further validates the attractiveness of our open-ended Virtual Advisor service delivery platform, which opens a gateway to millions of customers," said Chet Huber, OnStar president.  This will be the first mobile access for investors.  It is always good to be the first to do something like this.

3.What are the benefits and challenges of using other companies as partners in an e commerce website as staples is doing??? Expand your answer to include at least one risk and one benefit for each of the alliances: i.e., one each for GM-Fidelity and one each for Staples-Partners.

BENEFITS-  Increasingly, companies realize that if they are to survive, let alone prosper, they must share costs, skills, capital, information, technology, access to markets, and, most of all, control of the business venture. The purpose of such alliances is to tap into new clients and drive them to each others business. To form new lines of low cost distribution for your sales information and to tap into each others unique expertise. This can be done at many different levels and the more alliances you make the better it will work.

CHALLENGES - Reasons for dysfunctional alliances include a lack of: clear objectives, established operating procedures with clearly demarcated responsibilities, rules for articulating expectations, performance assessments, and contingency plans for responding to such unexpected events as market-driven reverses or political or cultural instability. Alliances generally fail when one party provides only access to capital and the other the predominance of R&D, product, or market. 

ONE RISK AND ONE BENEFIT( a = risk, b = benefit )

GM /FIDELITY ALLIANCE:

a. Less people could start buying and using GM cars(because of low quality).  This would reduce the number of people who would get access to Fidelity.  Fidelity would have to team up with another wireless company.  GM may realize that Fidelity really doesnt help them that much.

b. More people may buy and use GM cars.  They may tell their friends about the OnStar system and Fidelity that comes with it. This will double their customer fan base, which would increase profits.

STAPLES PARTNERSHIP:

 a. Too many people may come to the website at one time and cause an overload of the site if not managed properly.  The other mergers could take attention away from their sales and products. This would not be good.

 b. The case showed a benefit.  After the mergers, Staples customers increased, and revenue went up very high. 

      4. Is the strategy of using alliances in the corporate world increasing, decreasing, or about the same as it has been since 1980.  Explain why you think the current trend exists.

I believe it is increasing:

A. Allies may gain economies of scale in production and/or marketing.

B. Allies can share and/or transfer technical & manufacturing expertise.

C. Alliances may allow access to markets previously blocked by       governmental barriers.

D. Allies can direct combined competitive energies into building competitive advantage & defeating mutual rivals.

E. Strategic alliances as a way to trade expertise.

F. Strategic alliances as a way to drive traffic to each others business.

G. Strategic alliances are a way to get your message out cheaply!

These are a few of the ways strategic alliances are increasing.